Question

1. Helen is thinking of running a massage therapy business. Her office rent will be $2500 per month, and she needs at least one secretary with the $36000 annual salary. She thinks of advertising her business for 3 months with the cost of $4500.

1. If basic office supplies would cost her $15 per customer, and she gets 1000 customers per month, how much should she charge each customer so that she can make $3500 a month?

(4 mark)

2. How much profit will she earn if she charges each customer $50?  (3 marks)

Answer 1

Here, the office rent is $2200/Month). Helen needs alleard one secretary with $36,000 annual salary. Therefore, the an average monthly salary of that employee will be $36000 12 - $3000 /month Helen wishes to advertise her business for 3 months with the cost of $4500 therefore it will cost here - $4500 – 1 3 = $1503 pmonda]

office Here, the basic supplies costs here $15/ustomer As she gets 1000 customers per month. Here, the cost she would incur providing that to (1000 aistomers will be - = $15x1000 $15,000 that Her total monthly cost of running massage therapy buriness caill be office. t employee & Advertisement rent salary et service cost $(2500 + 3000 + 1500 + 15000) $ 22000 ]

A, she wants to make $3500 per the revenue she would was is the amount of this tot make $3500 per month he would want to make mount of this total Monthly cost plues this amount of 113500 that she would want to make per month CO that is Monthly Total + $3600, COSC 2 $22000+ $3570 = 1525570/month As, She sells her service to 1000 the amount she would change will be customers. each astomer 25700 1000 - $25.0 -- [Angver (@)] Ano (6) with her charging each customer $50 her revenue will be Total number ay per amount of customers charged to (monthly) each customer = 1000 X $50 - $500.00

- Total profit (monthly) - Total Revenue (Monthly) Total cost (mmatty) $50000 – $22000 $98,000 - 1$ 28,000) Answer (6)